ITEM:

INFORMATIONAL ITEMS/STAFF REPORTS

24.

REPORT ON FIRST QUARTER FINANCIAL ACTIVITY FOR FISCAL YEAR 2004-2005

Meeting Date:

From:

David A. Berger,

Program/

N/A

General Manager

Line Item No.:

Prepared By:

Rick Dickhaut

Cost Estimate:

N/A

## Committee Recommendation:The Administrative Committee reviewed this item on November 3, 2004 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  September 30, 2004 marked the conclusion of the first quarter of the District's 2004-2005 fiscal year.  Exhibits 24-A and 24-B are graphs showing both budgeted and actual year-to-date revenues and expenditures for the period.  Exhibit 24-C presents the same information in a table format.  The following comments summarize District staff's observations.

REVENUES

The revenues graph compares actual revenues received during the first quarter of Fiscal Year 2004-2005 to the amounts budgeted for that same time period.  As the graph shows, revenues for permits were 177 percent over the budgeted amount due to the large number of permit requests generated in response to the building moratorium that was proposed by Cal-Am.  Connection charges were just slightly more than the amount budgeted for the period, while the “Other” category is about 172 percent over budget due to unanticipated miscellaneous revenues.  Interest revenues for the period were approximately 46% under budget, mostly due to the timing of the actual receipt of the funds, i.e., interest on funds invested with the Local Agency Investment Fund are only paid on a quarterly basis.  User fees collected were approximately 19% under the budgeted amount due to the fact that the year-to-date revenue does not include receipts for the month of September.  No tax revenues or grants were anticipated or received during the first quarter.  Project reimbursements receipts typically lag behind the budgeted amount and were only 28% of the amount budgeted for the period.  Overall, total revenues received during the first quarter of the fiscal year represented 67% of revenues budgeted for the same period.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past years. Personnel expenses are 19% below budget, with the majority of the variance attributable to the unexpended personnel contingency of $63,100. Expenditures for supplies and services were about 18% percent over budget for the period. There were no capital assets purchases during the period. Expenditures for Project costs fluctuate throughout the year and were only about 30% of the budgeted amount for the quarter. The “Other” category includes items such as$159,600 for payback on the Harris Court office building, $68,400 for contributions to the capital asset reserve and$86,200 for contingencies.  No funds were expended during the quarter as most of these items are not utilized or recorded until later in the fiscal year.  Overall, expenditures for the first quarter totaled approximately 66% of the amount budgeted for the fiscal year.

### EXHIBITS

24-A    Revenue Graph

24-B    Expenditure Graph

24-C    Revenue and Expenditure Table

U:\staff\word\boardpacket\2004\2004boardpacket\20041115\InfoItems\24\item24.doc